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Powdered-milk prices still on the rise
The price of powdered milk nationwide continued to climb by 4-15 per cent despite the falling prices of imported ingredients.
The price tag for US-based Abbot Dairy Company products went up 10-15 per cent from VND102,500 ($6.40) to over VND400,000 ($25), depending on type and weight.
Prices also increased by 4-5 per cent for Danish-based Dumex powdered milk.
The most expensive brands now are the Friso Gold and Friso Mum powdered milk brands from Dutch Lady Viet Nam (DLV) Dairy Company. As of September 1, a 400g package and a 900g package now go for VND15,500 ($0.90) and VND31,500 ($1.90) more, respectively.
Dairy companies already raised prices last July due to inflation and a weakened dong.
DLV's recent price hike was already scheduled in July as part of the company's response to the rising milk prices, said Truong Van Toan, head of the DLV legal and public relations department.
Instead of raising prices all at once, DLV opted to divide the price hike into two phases to ease customers into the new prices, he said.
However, the price of raw materials imported from Australia and Europe have recently fallen to $3,500 per tonne and $3,250, respectively. This is a $250 drop per tonne from last month, and a $1,100 drop per tonne compared to the same period last year, according to market researchers.
Experts say that dairy companies can attribute many reasons for their rising prices, including new packaging designs with additional space for spoons, bigger boxes or new products with more nutrient additives.
Dairy companies still can make a handsome profit with the existing production costs without resorting to raising prices, according to an employee of a dairy company who declined to be named.
Each brand boasts a range of specialised milk products, including offerings for children and adults and slogans like "milk for geniuses" or "milk for top strongest bones". According to the National Institute of Policy and Strategy, most Vietnamese consumers believe that the more expensive the milk, the better it is for their children.
Powdered milk products for infants under one year old are now much more expensive than those for older children and adults.
Prices for 400g of Friso Gold 1 recently climbed to VND173,000 ($10.80), Friso Gold 2 to VND171,000 ($10.60), and Friso Gold 3 to VND157,000 ($9.80).
Similarly, the cost of a 400g of Dulac Gold 1 now stands at VND167,000 ($10.40), Dupro Gold 2 at VND164,000 ($10.25), and Dugrow Gold 3 at VND150,000 ($9.40).
Milk retailers report dairy companies are selling less in terms of product volume, but are making more in terms of profits. Some companies even pulled their cheaper ancillary brands from shelves because no one was buying them.
Dr. Dao Thi Yen Thuy of HCM City's Nutrition Center said nutrient additives like DHA, ARA, Omega 3 and Omega 6 do little to affect children's health or intelligence, and that the most crucial aspects are diet and parental care.
VNN
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